6 Things To Do Now If You Have Gambling Debt

Posted by author January 20, 2025 Gambling

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James Whitaker*, 35, first gambled at around the age of 12, playing Italian Roulette with real money. In his late 20s, he got hooked playing Blackjack at a casino in California. The rush of gambling was potent and intoxicating. It wiped out logic and reason.

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“Gambling triggered my brain’s reward center, releasing dopamine in the same way substance abuse might,” Whitaker told GOBankingRates. “While in action — whether placing bets, holding chips or watching volatile investments — I felt a heightened sense of excitement and focus, almost like a prolonged adrenaline surge.”

The compulsion to keep playing, even once Whitaker’s finances took a beating, was overpowering. “It’s a euphoria I didn’t want to end, but it’s accompanied by a cycle of desperation and loss,” he said.

By January 2020, after four years of addictive gambling, Whitaker was financially devastated. “My credit score was under 500, and my car was repossessed,” he said. “My gambling habit resulted in an estimated $120,000 in losses over four years.”

Desperate and in horrendous financial shape, Whitaker joined Gamblers Anonymous.

“By the time I sought help, I had no assets, struggled to keep savings accounts and had significant debts,” Whitaker said. “My largest loan was $25,000, paired with smaller loans and a shocking 533% interest rate title loan. Even after nearly 1,000 days of recovery, I’m still repaying debts, including $9,000 from the original $25,000 loan.”

If you have a gambling habit or addiction, your financial health (possibly along with other aspects of your health) will surely take a blow. What can you do if you have gambling debt?

We often hear that the first step to overcoming a problem is admitting you have a problem in the first place. It may sound like a tired cliché, but this recognition is key. You can’t get on safe financial footing until you admit (and own) that you just can’t gamble like a “normal” person.

“I realized gambling was a problem when, despite my consistent salary, I couldn’t keep savings, had mounting debts and prioritized gambling over basic living expenses,” Whitaker said.

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What if you dial down your gambling in order to prevent further financial distress? Or maybe just take a break? Maybe switch to a different game than your usual? Imagine if an alcoholic who experienced blackouts regularly told you that they could be fine if they just took a week off or switched to beer instead of wine. We’d shake our heads, knowing that attempts at moderation just don’t work. And it’s the same thing with gambling. If gambling has damaged your wealth, you have to stop completely in order to rebound.

“The most important thing people with gambling debt should do is to stop gambling altogether,” said Simon Vincze, head of sustainable and safer gambling at Casino Guru.

If you’re resistant, remember this: Gambling is designed to keep you losing.

“All types of gambling are configured to give the house an advantage, which means that, in the long run, it always leads to people losing more money.”

You may be overwhelmed when you start to address just how bad things have gotten from gambling. Be careful not to let that push you into paralyzing anxiety, as that will impede your recovery. Begin your plan of attack to tackle debt by writing down every single debt you carry.

“This act alone can reduce anxiety by transforming abstract fears into concrete numbers you can work with,” said Joseph Cavins, LMFT, clinical director at Southern California Sunrise Recovery Center. “Then, reach out to a trusted friend or family member who can help hold you accountable as you make financial decisions. This support system becomes crucial in moments when you feel tempted to gamble again.”

Here’s where gambling is distinctly insidious: The financial losses it creates can stimulate you to want to gamble more. Couldn’t just one big win fix this mess? Don’t fall prey to this unsound thinking/fantasy.

“It is human nature to feel like you just need one good bet or day at the casino to cancel out the debt you have,” said Ashley Morgan, an attorney and owner at Ashley F Morgan Law, PC. “However, that is not usually the case. So it is important to take stock of the debt and your current financial situation.”

Your first step is to review your budget and determine whether you have the ability to pay off your debt as things stand.

“Is the debt something you can pay reasonably quickly? Do you need a debt consolidation loan? Do you need a second job to make it happen?” Morgan said. “A realistic plan to deal with the debt is critical or you may be tempted to start gambling again just to try and get out of debt.”

“If you cannot pay off the debt, then you may need to consider bankruptcy,” Morgan said. “Also, even if you can pay off the debt over some time, sometimes considering bankruptcy is also a good idea to resolve the debt quickly, if having that debt will be triggering and may encourage you to gamble again. So wiping away the debt may help with avoiding gambling in the future. A Chapter 7 is an option to wipe away the debt and a Chapter 13 allows you to restructure the debt over time. Both options require really looking at your income and budget and to understand where your money is going.”

Whitaker may not yet be entirely out of the debt danger zone, but he’s making significant progress. Recovery plays a pivotal role here and continues to help Whitaker keep the demons of gambling addiction at bay. It’s also given him tools to help boost his financial health.

“Recovery has allowed me to rebuild my finances slowly, prioritizing honesty and group therapy to change destructive patterns,” Whitaker said. “There is a way out, but it requires honesty, openness and the willingness to commit to recovery. Programs like GA not only provide emotional support but also practical tools to manage debt.”

*The source has chosen this alias to protect his anonymity.

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This article originally appeared on GOBankingRates.com: 6 Things To Do Now If You Have Gambling Debt